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Fraud*According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain*As defined in Wikipedia

Saturday, May 22, 2010

This clip drives me crazy. I could suppose this woman is just stupid but I don't think she is. I think she's simply a liar and a shill. "How dare you accuse us of being unethical?"
No ma'am, how dare you!

That's right....he says "I apologize to the planet". Still think it's moral or even smart? You see, in her mind, the little guy "can't compete because they don't have the proper skills". Is that really your defense to market manipulation? Really? These financial elitists are really full of themselves, aren't they? If you're not in their club, with their unfair access, well...tooo bad! There are so many things wrong with her argument it's astounding. But I guess if your book sales depend on not understanding or caring then.....well...whatever.

Posted by
RobertM

13
COMMENTS:

Anonymous
said...

I'll bet you bonus to donuts...they do not care...and btw listening to her is excruciating!

There is speaking well, speaking easily, speaking justly and speaking seasonably: It is offending against the last, to speak of entertainments before the indigent; of sound limbs and health before the infirm; of houses and lands before one who has not so much as a dwelling; in a word, to speak of your prosperity before the miserable; this conversation is cruel, and the comparison which naturally arises in them betwixt their condition and yours is excruciating. --LA BRUYERE.

Saluzzi is a joke - Themis Trading has an axe to grind - they're in competition with the HFT players. There's absolutely nothing sinister going in HFT as Irene was trying to point out - it's pretty much the same as regular trading only faster. No-one is being front-run, colocation is available to anyone willing and able to pay the fees etc etc

@No-one is being front-run, colocation is available to anyone willing and able to pay the fees etc etc

BS...

Manipulation by whom? Markets can be rigged with computers using high-frequency trading programs (HFT), which now compose 70% of market trading; and Goldman Sachs is the undisputed leader in this new gaming technique. Matt Taibbi maintains that Goldman Sachs has been "engineering every market manipulation since the Great Depression." When Goldman does not get its way, it is in a position to throw a tantrum and crash the market. It can do this with automated market making technologies like the one invented by Max Keiser, which he claims is now being used to turbocharge market manipulation.

Whether Goldman actually crashed the market in this case will be left to conjecture, but Keiser explained in an email how it could theoretically be done:

Remove all the buy orders that you control (since HFT traffic is 70% of the order flow, if you simply pull your HFT buy orders, you remove a huge chunk of the market - in a heartbeat - leaving a sudden price vacuum). If you wanted to scare congress to vote the way you wanted them to vote - a congress that is directly invested in stocks trading on the exchange and ETF's tied to the prices on the exchange - just pull your buys. When they do what you want them to do - replace your buys. If you want to make the market go up - pull your sell orders. It works both ways. (It's all detailed in my Virtual Specialist Technology patent - how to make markets in an 'infinite inventory environment.')

In a market where 70% of all trades are executed by computer algorithms via High Frequency Trading (HFT), Goldman Sachs has the power to make the market crash or rise at will. In fact, Goldman has a major Weapon of Mass Destruction in its Program Trading monopoly of the New York Stock Exchange, as Tyler Durden described on Zero Hedge:

“Goldman’s dominance of the NYSE’s Program Trading platform, where in addition to recent entrant GETCO, it has been to date an explicit monopolist of the so-called Supplementary Liquidity Provider program, a role which affords the company greater liquidity rebates for, well providing liquidity, and generating who knows what other possible front market-looking, flow-prop integration benefits. Yesterday [5/6/10], Goldman’s SLP function was non-existent. One wonders - was the Goldman SLP team in fact liquidity taking, or to put it bluntly, among the main reasons for the market collapse….

HFT (high frequency trading) is being done on every electronically traded item on a global basis. Ergo, firms could be making pennies a few billions times per day…It was imperative for the NYSE and other exchanges to price securities in pennies to disguise ‘HFT’ & to provide ample trading opportunities.

While the Street is percolating with anger and curiosity about ‘High Frequency Trading’ there is also frustration and astonishment that the media, regulators and our duly elected are not addressing what could be the biggest financial abuse story of our times, if not history.

Though the blagoshpere is all over the ‘HFT’ trading story an important piece of the puzzle has not been publicized enough. Few people realize that exchanges actually pay firms to trade against order flow when they act as a SLP – ‘Supplementary Liquidity Provider’.

Exchanges will pay firms ¼ of a penny if they ‘provide liquidity’ when an order appears in their system. This is extra incentive to front run order flow… Theoretically a firm could ‘scratch’ all day and profit. The NYSE Euronext (Oct.24, 2008): A newly announced pilot program will establish Supplemental Liquidity Providers (SLPs), a new class of upstairs, electronic, high-volume members incented to add liquidity on the NYSE.

Be sure to read the July Trader Magazine’s article on algorthmic flash trading, a/k/a front running:

Flash orders are also called “step up” or “pre-routing display” orders. The rationale for these order types is simple: Better me than you. They allow a venue to execute marketable orders in-house when that market is not at the national best bid or offer, instead of routing those orders to rival markets. They do this by briefly displaying information about the order to the venue’s participants and soliciting NBBO-priced responses. If there are no responses, the order can be canceled or routed to the market with the best price.

All four markets with flash orders treat these orders in a similar way. If they get a marketable buy order, for instance, that would otherwise be routed to a market quoting at the NBBO, they flash the order to some or all of their participants as a bid at the same price as the national best offer. Exactly who sees the flash, how that information is conveyed and the duration of the flash vary by market. The maximum allowable time for a flash is 500 milliseconds, or half a second, although most of the markets flash routable orders for under 30 milliseconds.

So what can be done to restore free and fair markets? A step in the right direction would be to prohibit flash trades. The SEC is proposing such rules, but they haven’t been effected yet.

Another proposed check on HFT is a Tobin tax – a very small tax on every financial trade. Proposals for the tax range from .005% to 1%, so small that it would hardly be felt by legitimate “buy and hold” investors, but high enough to kill HFT, which skims a very tiny profit from a huge number of trades.

That is what proponents contend, but a tiny tax might not actually be enough to kill HFT. Consider Denninger’s example, in which the high-frequency trader was making not just a few pennies but a full 29 cents per trade and had an opportunity to make this sum on 99,500 shares (100,000 shares less 5 100-lot trades at lesser sums). That’s a $28,855 profit on a $2.63 million trade, not bad for a few milliseconds of work. Imposing a .1% Tobin tax on the $2.63 million would reduce the profit to $26,225, but that’s still a nice return for a trade that takes less time than blinking.

I am very impressed with Ellen Brown's websites (in the above link). She is working so hard to help solve the financial and debt problems in states and federally. Too bad she wasn't one of Obama's advisers.

GS666 #4 on TopSites List

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